PSI life, accident, and health Questions with Verified Answers
1. How long after being entitled to disability benefits will an individual be eligible to r
d d d d d d d d d d d d d d
eceive Medicare benefits? d d
A. immediately
B. 1 year
d d
C. 2 years
d d
D. At age 65: 2 years
d d d d d
2. What is the return of premium rider? d d d d d d
A. an increasing amount of term insurance that always equals the total of premiums
d d d d d d d d d d d d d
paid up to the current point
d d d d d
B. a provision that allows the insured to cancel the policy in the first two years and have pre
d d d d d d d d d d d d d d d d d
miums refunded d
C. an increasing amount of term insurance that equals the cash value of the policy at an
d d d d d d d d d d d d d d d
y point in time
d d d
D. a provision that states the insurer must return any premiums paid during the free-
d d d d d d d d d d d d d
look period: an increasing amount of term insurance that always equals the total of premiu
d d d d d d d d d d d d d d
ms paid up to the current point
d d d d d d
3. In a home healthcare benefit, all of the following are eligible expenses EXCEPT
d d d d d d d d d d d d
A. intermittent part-time nursing care; d d d
B. physical, occupational, or speech therapy; d d d d
C. blood transfusions d
D. medical social services;: blood transfusions d d d d
4. All of the following are classifications of risk EXCEPT
d d d d d d d d
A. substandard
B. preferred
C. declined
D. non-nicotine: non-nicotine d
5. Which of the following is exempted from the incontestability provision in insurance p
d d d d d d d d d d d d
olicies?
1d/d27
,A. fraudulent misstatements d
B. pre-existing conditions d
C. change in healthd d
D. changes in the insurance code: fraudulent misstatements
d d d d d d
6. A group conversion option may be used in all the following instances EXCEPT
d d d d d d d d d d d d
A. the termination of the master policy.
d d d d d
B. loss of coverage due to loss of employment.
d d d d d d d
C. loss of eligibility on the part of a class of insureds.
d d d d d d d d d d
2d/d27
, D. a life-changing event, such as marriage, divorce, or childbirth.: a life-chang-
d d d d d d d d d d
ding event, such as marriage, divorce, or childbirth.
d d d d d d d
7. Which of the following is characteristic of a non-qualified plan?
d d d d d d d d d
A. defined vesting schedule d d
B. plan established by the employer d d d d
C. plan does not meet federal guidelines for tax benefits
d d d d d d d d
D. employer contributions are deductible business expenses: plan does not meet feder
d d d d d d d d d d
al guidelines for tax benefits
d d d d
8. What does it mean if a health policy is conditionally renewable?
d d d d d d d d d d
A. Insurer may elect NOT to renew based on the health of the insured.
d d d d d d d d d d d d
B. Insurer may elect NOT to renew for any reason only on the policy anniver-
d d d d d d d d d d d d d
dsary or premium due date. d d d d
C. Insurer may elect NOT to renew only under conditions specified in the policy.
d d d d d d d d d d d d
D. Insurer may elect NOT to review if the insured exceeds the maximum number of claims
d d d d d d d d d d d d d d
.: Insurer may elect NOT to renew only under conditions specified in the policy.
d d d d d d d d d d d d d
9. Which of the following is TRUE of an equity-indexed annuity?
d d d d d d d d d
A. It is a variable annuity.
d d d d
B. It may decrease in value.
d d d d
C. It requires a securities license to sell.
d d d d d d
D. It has a guaranteed minimum interest rate.: It has a guaranteed minimum interest rat
d d d d d d d d d d d d d
e
10. During which period of a Disability Income Policy is coverage effective but during which
d d d d d d d d d d d d d
dno benefits will be paid under the policy?
d d d d d d d
A. benefit period d
B. elimination period d
C. grace period d
D. probationary period: probationary period d d d
11. What specific new procedures does the USA Patriot Act require of insur-
d d d d d d d d d d d
dance companies? d
A. Establish an anti-money laundering program d d d d
B. Investigate applicants for potential terrorist links d d d d d
3d/d27
1. How long after being entitled to disability benefits will an individual be eligible to r
d d d d d d d d d d d d d d
eceive Medicare benefits? d d
A. immediately
B. 1 year
d d
C. 2 years
d d
D. At age 65: 2 years
d d d d d
2. What is the return of premium rider? d d d d d d
A. an increasing amount of term insurance that always equals the total of premiums
d d d d d d d d d d d d d
paid up to the current point
d d d d d
B. a provision that allows the insured to cancel the policy in the first two years and have pre
d d d d d d d d d d d d d d d d d
miums refunded d
C. an increasing amount of term insurance that equals the cash value of the policy at an
d d d d d d d d d d d d d d d
y point in time
d d d
D. a provision that states the insurer must return any premiums paid during the free-
d d d d d d d d d d d d d
look period: an increasing amount of term insurance that always equals the total of premiu
d d d d d d d d d d d d d d
ms paid up to the current point
d d d d d d
3. In a home healthcare benefit, all of the following are eligible expenses EXCEPT
d d d d d d d d d d d d
A. intermittent part-time nursing care; d d d
B. physical, occupational, or speech therapy; d d d d
C. blood transfusions d
D. medical social services;: blood transfusions d d d d
4. All of the following are classifications of risk EXCEPT
d d d d d d d d
A. substandard
B. preferred
C. declined
D. non-nicotine: non-nicotine d
5. Which of the following is exempted from the incontestability provision in insurance p
d d d d d d d d d d d d
olicies?
1d/d27
,A. fraudulent misstatements d
B. pre-existing conditions d
C. change in healthd d
D. changes in the insurance code: fraudulent misstatements
d d d d d d
6. A group conversion option may be used in all the following instances EXCEPT
d d d d d d d d d d d d
A. the termination of the master policy.
d d d d d
B. loss of coverage due to loss of employment.
d d d d d d d
C. loss of eligibility on the part of a class of insureds.
d d d d d d d d d d
2d/d27
, D. a life-changing event, such as marriage, divorce, or childbirth.: a life-chang-
d d d d d d d d d d
ding event, such as marriage, divorce, or childbirth.
d d d d d d d
7. Which of the following is characteristic of a non-qualified plan?
d d d d d d d d d
A. defined vesting schedule d d
B. plan established by the employer d d d d
C. plan does not meet federal guidelines for tax benefits
d d d d d d d d
D. employer contributions are deductible business expenses: plan does not meet feder
d d d d d d d d d d
al guidelines for tax benefits
d d d d
8. What does it mean if a health policy is conditionally renewable?
d d d d d d d d d d
A. Insurer may elect NOT to renew based on the health of the insured.
d d d d d d d d d d d d
B. Insurer may elect NOT to renew for any reason only on the policy anniver-
d d d d d d d d d d d d d
dsary or premium due date. d d d d
C. Insurer may elect NOT to renew only under conditions specified in the policy.
d d d d d d d d d d d d
D. Insurer may elect NOT to review if the insured exceeds the maximum number of claims
d d d d d d d d d d d d d d
.: Insurer may elect NOT to renew only under conditions specified in the policy.
d d d d d d d d d d d d d
9. Which of the following is TRUE of an equity-indexed annuity?
d d d d d d d d d
A. It is a variable annuity.
d d d d
B. It may decrease in value.
d d d d
C. It requires a securities license to sell.
d d d d d d
D. It has a guaranteed minimum interest rate.: It has a guaranteed minimum interest rat
d d d d d d d d d d d d d
e
10. During which period of a Disability Income Policy is coverage effective but during which
d d d d d d d d d d d d d
dno benefits will be paid under the policy?
d d d d d d d
A. benefit period d
B. elimination period d
C. grace period d
D. probationary period: probationary period d d d
11. What specific new procedures does the USA Patriot Act require of insur-
d d d d d d d d d d d
dance companies? d
A. Establish an anti-money laundering program d d d d
B. Investigate applicants for potential terrorist links d d d d d
3d/d27
